Hyundai Motor Finance Co. claims Denny Hecker owes Hyundai $104 million, according to Automotive News.
Hecker has been unable to pay back loans from Chrysler Financial and Hyundai Finance Co. Both of the finance companies loaned money to Hecker to buy vehicles for his rental car and leasing companies.
According to a filing in U.S. Bankruptcy Court in Minneapolis, Hyundai Motor Finance in 2008 made two loans to refinance the purchase of 4,477 vehicles for Advantage Rent A Car Co. But Hyundai said it hasn’t received a payment since December and hasn’t been able to take control of the vehicles, which Hyundai said were used as collateral.
Michael Buckingham, president of Hyundai Motor Finance, said he’s hopeful the captive recover some of the money now that Hertz Corp. has acquired Advantage.
Buckingham said Advantage had about 3,500 vehicles when Hecker filed for bankruptcy in December. When a judge awarded Advantage to Hertz last week, Buckingham said 2,500 vehicles were left.
Chrysler Financial, which loaned Hecker $660 million to buy rental car inventory, has already recouped about $68.3 million through foreclosures, repossession of cars, and the sale of collateral.
Hecker’s attorney says his client still is trying to negotiate a deal with Chrysler. One issue is determining which captive financed which rental cars.